Higher Colleges of Technology
From the SelectedWorks of Dr. Grace S. Thomson
Fall September 13, 2007
A Taxonomy of Selected Organizational TheoriesGrace S. Thomson, Nevada State College
Available at: https://works.bepress.com/grace_thomson/18/
Taxonomy of Organizational 1
Running head: TAXONOMY OF ORGANIZATIONAL THEORIES
Taxonomy of Organizational Theories
Grace S. Thomson
September, 2007
Taxonomy of Organizational 2
Abstract
This research proposes a taxonomy of 16 organizational theories that represent
both germinal and current approaches. The author has used methodologies used
by Miner (2005; 2006) and Vibert (2004) for purposes of classification of
theories in macro level and micro level categories. Macro level theories are
aimed at describing the design, behavior and paradigms of the organizations,
whereas Micro level theories are focused on the description of individual
behaviors and interactions within the organization. This taxonomy has identified
nine theories that represent Eurocentric and traditional thought; three theories
that represent global approaches and four theories considered non-traditional,
identifying their creators and developers and the year of publication.
The doctoral learner has selected theories that apply to her current practice and
research interest, which are organized in three tables, clearly identifying theories
of organizational behavior, design and paradigms. Each table lists theories in no
particular order.
Taxonomy of Organizational 3
Taxonomy of Organizational Theories
Table 1 Eurocentric and Traditional Thought
Theory General Description Current examples Other attributes
1. Micro Theories and
Macro Theories of
Organization
(Barnard , 1937)
Barnard is considered the father of
management theory, and precursor of the
“paradigm of management” (Mitchell &
Scott, 1985). He proposed a number of
micro and macro organizational theories .
Barnard’s Micro theories studied
individual behavior, motivation,
communication and small groups.
Individual behavior theories were the
cornerstone of organizational behavior
and study four: a) free will, b) causes of
behavior, c) reverse causality and d)
tension reduction (Mitchell & Scott, 2003,
The influence of Barnard in
the contemporary school of
management reaches out to
the discussion of the role of a
CEO as “shaper and manager
of shared values in an
organization” (Peters &
Waternan, as cited by
Mitchell & Scott, 1985)
Cognitive theories proposed
by Barnard include: goal
setting, cost/benefit models,
contingent rewards or
His human behavior theory
establishes a difference between
“individual” and “person”.
Individuals have motives and
purposes (Scott, 2003). Every
individual carries a person
within, which has traits,
attitudes and intentions that
may be predicted.
Criticism to Barnard are
directed to his arbitrary
boundaries between persons and
individuals.
Taxonomy of Organizational 4
p. 241).
Barnard initiated the current debate
between behaviorists and cognitive
scholars. For Barnard behaviors are
influenced by environment and cognitions
(Mitchell & Scott, 1985, p. 245)
Barnard proposes that professional
managers have the right to inculcate
motives and values in their subordinates,
being that the core of their executive
functions. (Mitchell & Scott, 1985, p.
257)
Bernard’s Macro Theories were built on
the concepts of exchange, consent to
authority, legitimacy of leadership,
executive responsibility and inculcation of
operant approaches, and
equity (Mitchell & Scott,
1985, p. 245).
Barnard Micro level theories
work were the base of Simon
(1957) work on bounded
rationality, Misbitt and
Wilson (1979) on cognitive
processes (Mitchell and
Scott, 1985, p. 243).
Festinger (1951) theories of
dissonance and Weick
(1979) organizational
behavior theories, were also
influenced (Mitchell and
Scott, 1985, p. 244).
His appeal to intuition as a
source of human behavior was
compared by Miner (2005) with
foolishness in decision making,
purported by the Carnegie
Scholars (Duncan, 2006)
Some scholars have disregarded
his contributions to behavioral
science and attributed these
advances to the psychological
fields (Mitchell & Scott, 1985).
In macro-theories, the systems
theory comes from Barnard, too
and is linked to contingency
theories as part of macro-theory
of organization, and theory of
Taxonomy of Organizational 5
morals.
Three paradigms outstand in Barnard’s
theories: 1) The organization as a system,
2) the contingency approach and 3) the
mean-ends values (Mitchell & Scott,
1985, p. 254)
managerialism and cooperation
(Mitchell & Scott, 1985, p.
254).
2.Theory of Motivation
(Barnard, 1938)
Motivation Theory- Micro
level
Barnard’s (1938) theory of motivation
merges the concepts of behavior and
motivation. He views motivation from
four perspectives: “goal setting,
cost/benefit notion and rewards, equity,
and performance”. He contends that
people have motives or purposes that they
can meet through two routes: active
cognitive approach or non-reflection. If
they opt for an active cognitive approach,
The use of monetary and
non- monetary incentives to
compensate and stimulate
workers is as current practice
now as it was when Barnard
wrote about the notions of
cost benefit and rewards.
Firms in the United States
compensate the individual
effort through particular
If people make decisions
without reflection, they still
need a structure of norms to
guide them. The outcome of
either choice will depend on the
impact of the environment.
Efficiency according to Barnard
is the “satisfaction of individual
motives”, effectiveness is “the
accomplishment of the
Taxonomy of Organizational 6
individuals will make choices based on
the cost and benefits (Mitchell & Scott,
1985, p. 248).
The underlying concept in Barnard’s
proposal is manipulation. Managers may
influence their subordinates using
coercion, rationalization or inculcation of
motives. Barnard recommends
inculcating motives, and these may be of
two types: a) incentives (objective) or b)
persuasion (subjective) (Mitchell & Scott,
2003, p. 249).
incentives connected to
performance and outcomes.
In other cases, when
monetary compensations are
not available, organizations
use perks such as additional
training, representation or
affiliation in associations and
other non-monetary
instruments (Mitchell &
Scott, 1985, p. 249)
cooperative purpose” (Mitchell
&Scott, 1985, p. 246).
By using Barnard’s concept of
persuasion it is possible to
encourage exercising expert
power instead of position power
in their relationships with
subordinates (Galbraith, 1974,
p. 34).
3.Goal-setting theory of
motivation
(Locke & Latham, 1967)
Motivation Theory- Micro
Locke and Latham (2002) developed this
theory further in the 50s and 60s from the
psychological perspective, contrary to the
“behavioral” current of those years that
Several studies reported by
the authors show that by
setting high difficulty goals,
employee productivity arises.
Originated in Barnard (1937)
and in Ryan (1970) this theory
is one of his four cognitive
theories of motivation.
Taxonomy of Organizational 7
level classified motivation as physiological.
By defining a goal or an objective,
individuals receive signals of the
magnitude of contribution they have to
make (Mitchell & Scott, 1985), e.g. write
proposals, enroll in training programs,
meet sales goals. The theory recognizes
the differences between personal goals
(subjective and internal: status,
advancement) and group goals (objective
and external: cooperation).
Locke uses the term motivation hub to
express that satisfaction of personal goals
is the route to action and mediator of
external incentives. The diamond of
relationships
Cases in silviculture
analyzed by these authors,
show 60% to 90% of
productivity increase in some
cases (Locke and Latham,
2002, p. 711).
Other studies showed
improvement in performance
appraisal when scores were
redefined as goals (Brown &
Latham, as cited by Locke
and Latham, 2002).
Goal-setting in the selection
process in hiring was used by
Latham et al (as cited by
Locke and Latham 2002) in
Locke and Latham (1967)
theory of motivation is
categorized by Miner (2005) as
highly important, highly valid,
highly useful and
institutionalized (Duncan,
2006).
Locke and Latham developed
the theory moving it from an
unconscious to a conscious
character that purported that
“conscious goals affect action”
(Locke & Latham, 2002, p.
705).
Locke and Latham define goal
as “the object or aim of an
Taxonomy of Organizational 8
The theory has the following elements:
Moderators: Goal commitment, goal
importance, self-efficacy, feedback, task
complexity. Goal core: specificity,
difficulty. Performance: productivity,
cost improvement, self-regulation.
Mechanism: choice/direction, effort,
persistence and strategies (Locke and
Latham, 2002, p. 714).
situational analysis, where
the applicant is asked to
respond to dilemmas, in
order to assess goals and
intentions.
Goal-setting has also been
used for self-regulation in
attendance to work (Frayne
and Latham, as cited by
Locke and Latham, 2002,
2002, p. 712)
action” expressed by standards
in a given time frame.
Self-efficacy is an important
factor in performance.
Individuals with high self-
efficacy self-set their goals, and
usually will perform better,
because their commitment is
higher, use better strategies and
respond to feedback (Locke and
Latham, 2002, p. 706).
4.Contingency theory of
organizations
(Lawrence & Lorsch, 1967)
Systems Theory- Macro
Level
Lawrence and Lorsch (1967) analyzed
complex organizations to study their
internal and external relationships and the
ability to cope with the demanding
environment. Differentiation and
In higher education. Colleges
and universities organize
their functions in units,
divided in relation to their
fields of experience (i.e.
According to Miner (2005),
contingency theory has high
levels of importance, regular
validity, acceptable usefulness
at the organizational level, and
Taxonomy of Organizational 9
integration are the two new elements in
the theory.
Lawrence and Lorsch’s approach analyzes
the entire organization and moves down to
its subsystems, whereas Argyris (1964),
Likert and MacGregor (1960) and March
and Simon (1958) started analyzing the
individual and move up to the
organization level (Lawrence & Lorsch,
1967, p. 3).
Barnard (1937) set the germinal discusion
in contingency –type approach, stating
that individuals in an organization are part
of a system that faces social, physical,
biological influences (Mitchell and Scott,
1985, p. 243).
schools, colleges,
departments, programs).
Each one of these units has a
Dean or Chair who exercises
a role with invested power.
In small colleges the
relationship between Dean
and faculty members in each
unit is not the type
boss/subordinate, because
each individual has as much
or more knowledge and
experience than their leader.
The relationship between
each unit is based on power
equalization. Every member
is fully institutionalized. This
means that it is recognized by a
large percentage of scholars and
practitioners (Duncan, 2006)
Given the environment changes
(competition, technological
level), the internal structure of
the organization will have to
change.
The relationships between
hierarchy and subordinates are
based on the existence of expert
power and power equalization.
Expert power is technical
competence in certain topics;
power equalization occurs when
Taxonomy of Organizational 10
Lawrence and Lorsch (1967) presented a
variation of contingency theory based on a
rational (syllogistic) statement:
The more variation there is in the system,
the more differentiated the internal
structure will be. The more differentiation,
the more difficult to coordinate the units.
The more difficulty, the more conflict in
relationships. The more conflict, the more
resources have to be allocated to
compensate the shortcomings (Scott,
2003, p. 97).
An organization is divided in subsystems
where individuals within behave
differently –differentiation-. Despite the
differences, subsystems have to be
of the unit participates in
shared decision-making.
Decisions such as new
curriculum, new classes, are
assigned to committees
which report to the Dean and
present their findings to the
school. Although the final
decision is made by a
superior board, which has
position power, and has the
last word based on the expert
power of the committee.
By operating this way,
decision-making is moved to
the lower levels of the
individuals with expert power
access upper levels of the
organization by using their
knowledge and information
(Lawrence and Lorsch, as cited
by Galbraith, 1974, p. 34)
Another important contribution
of Lawrence and Lorsch is in
the definition of formal and
informal communication
mechanisms: task forces,
meetings and committees
(Malnight, 2001, p. 1208),
expanded by Galbraith (1974).
Individuals have to be assigned
to positions that fit (Mitchell &
Taxonomy of Organizational 11
integrated to accomplish the
organizational task –integration-
(Lawrence and Lorsch, 1967, 4)
Lawrence and Lorsch (1967) highlight the
need of integrating roles for each
individual, with a given level of power to
make decisions (Malnight, 2001, p. 1208).
Integration is the “task of top
management” (Lawrence and Lorsch,
1967, p. 11).
organization (Galbraith,
1974, p. 33)
Scott,1985, p. 253) to guarantee
that the system is operational.
This fitness concept implied
factors such as: education,
experience, age, sex, prestige,
nationality and race; or types of
rewards, communication and
leadership.
5.Information processing
Contingency Model
(Galbraith, 1974)
Organization Design
Theory- Micro level
Perspective added by Galbraith in 1974, to
complement contingent theory, by adding
information processing to the problem of
organizational design (Scott, 2003, p. 97).
Galbraith based his contributions on three
premises of contingency theory developed
In project management the
use of the contingency theory
and the perspective of
information processing make
possible the coordination of
tasks.
The model of information
processing is aimed at
facilitating the flow of
information in the organization.
Each strategy has advantages
and costs. The creation of slack
Taxonomy of Organizational 12
by March and Simon (1957): rules, goal
setting and hierarchy (Galbraith, 1974, p.
29).
Galbraith highlights the importance of
information in the design of the
organization, and states: “the greater the
task uncertainty, the greater the amount of
information that must be processed among
decision makers during task execution in
order to achieve a given level of
performance” (p. 28)
If a given task is understood from the
beginning, the level of uncertainty for all
the participants is reduced and all the
subtasks will gather around a global goal
(Galbraith, 1974).
Galbraith proposes creating
slack resources, by making
adjustments to projects,
increasing budgets,
extending deadlines, if the
uncertainty is great.
However, the costs of this
strategy could be customer
delays, and extensions in
project completion
(Galbraith, 1974)
Other organizations , deal
with problems in
communication by creating
jointly process of decision-
making; e.g. Multinational
resources could delay the
completion of a project;
creating self-contained tasks
could reduce specialization;
investment in vertical
information systems requires
adding new channels of
information, which requires
financing, and, creating lateral
relations, i.e. task forces, teams,
matrix-type organizations,
creates conflicts in power and
leadership (Galbraith, 1974, p.
33).
Following contingency theory,
the behavior of a member of the
Taxonomy of Organizational 13
Galbraith (1974) proposes a model of
information processing that relies on four
strategies: 1) creation of slack resources,
2) creation of self-contained tasks, 3)
investment in vertical information systems
and, 4) creation of lateral relations, all of
them based on perspectives of March &
Simon (1957) and Lawrence and Lorsch
(1967).
firms with branches in
different countries, would let
their local managers make
decisions about their units,
given their knowledge about
the environment and the
behaviors that occur in it.
system influences the behavior
of the others, thus the
coordination between rules,
goal setting and hierarchy will
ensure that exceptions are
minimal (Galbraith, 1974, p.
30).
6.External control of
organizations
(Pfeffer & Salancik, 1978)
Sociological theories -
Macro Level
This theory developed by Pfeffer and
Salancick (1978) is based on the open-
systems approach to organization as
loosely coupled systems (Scott, 2003, p.
88). These are systems where behavior is
connected to rules or where goals are
connected to an individual’s actions
A study conducted by Pfeffer
and Moore (1980) tracked
forty departments of two
American universities over
twenty years. Its purpose was
to explain the turnover of
departmental heads based on
In this sense, Pfeffer’s
statements are classified by
Mitchell and Scott as symbolic
management constructs (1985,
p. 257), restated by Scott (2003)
as views of the organization as
a “coalition of shifting interest
Taxonomy of Organizational 14
(March and Olsen, as cited by Scott, 2003,
p. 88).
Pfeffer based his assertions on Barnard’s
view of management obligation (Mitchell
and Scott, 1985, p. 257). Pfeffer and
Salancick (1978) address Symbolic
management to explain that organizations
influence on their members’ beliefs, by
making them adhere to norms, but the
leaders of the organization fail to exercise
it themselves (Mitchell and Scott, 1985, p.
257) creating a “knowing-doing” gap
(Scott, 2003, p. 88) where managers do
not do what they inculcate in others.
Succession is studied in this theory, as
part of the symbolism of organizations.
the departmental paradigm
development (Pfeffer &
Moore, 1980, p. 388).
The study defined variables
such as: existence of
consensus, shared paradigm
within the department,
relationship of consensus and
size, faculty demography,
performance, and resource
scarcity (p. 388).
To measure paradigm level,
the authors used variables
such as: “average length in
words of dissertation
abstracts in each field (…),
groups”, characterized by Miner
(as cited by Duncan, 2006) as a
theory of external control.
In another work by Pfeffer
(1992) he discusses the power
of informal groups within an
organization. This power does
not come from position but
from traits such as: level of
energy, physical stamina,
tolerance to conflicts,
inclination for coalitions and
not egotistical attitudes (Scott,
2003, p. 311)
This theory unveals the
inconsistency between
Taxonomy of Organizational 15
Succession is an important element in
organizational change due to its political
implications (Pfeffer & Moore, 1980, p.
387). Managerial turnover is caused by
conflicts or dissensus resulting from the
diversity of opinions within a department
about the fit of the manager in the
position, which they call departmental
paradigm (Pfeffer & Moore, 1980, p.
387).
average length in pages of
dissertations of each field”
(p. 397)..
The study revealed that
paradigm was the most
significant variable to
explain and predict tenure,
which suggests a high level
of external influence in the
organization (Pfeffer &
Moore, 1980, p. 404).
inculcation of values in others
and in oneself result from
Barnard’s germinal proposals
(Mitchell & Scott, 1985, p.
257).
7.Living Systems Theory
(LST)
(Katz & Kahn, 1978; Kuhn
1986; Vancouver, 1996)
Systems Theory- Macro
Living systems theory (LST) evolves from
the evolutionary approach of Darwin, that
purports an analogy in the procreation and
survival of organizations to that of living
beings (Vancouver, 1996, p. 167). From
To measure the efficiency of
the organization as a living
system, reference signals
such as job satisfaction and
compensation are used to
The definition of organizations
as rational systems or
organisms was rooted in
Barnard (1938) Blau and Scott
(1962) and March and Simon
Taxonomy of Organizational 16
level the organizational perspective, LST is
based in the understanding of humans and
what makes them react (Vancouver,
1996). Based on the thoughts of Ashby
(1956), (Kuhn (1986) and Katz & Kahn
(1978).
In living systems theory the “needs,
personality, values, goals, and strategies
are all relevant to understanding humans
in work organizations” (Vancouver, 1996,
p. 167). Understanding these individual
needs is vital to the understanding of
social systems.
Organizations as humans reorganize in
virtue of “reference signals”: individual
needs, their inputs and outputs. They are
measure retention; however,
monitoring a retention
system uses resources.
A firm will have to allocate
money and time to follow up
the retention indexes
(Vancouver, 1996).
The commitment to an
espoused goal as indicator of
purpose is another reference
signal of possible needs for
reorganization. (March &
Simon, as cited by
Vancouver, 1996).
Individual’s performance
assessments are more
(1958).
According to LST,
organizations have two
purposes: High specificity and
high formalization, whereas
families have high
formalization but little goal
specificity; social movements
have high goal specificity and
low formalization; and
community organizations have
both low formalization and low
specificity (Scott, 2003, p. 27)
Scott (2003) acknowledges that
his ideas about rational systems
were misleading when he wrote
Taxonomy of Organizational 17
created with a purpose or a goal (Blau and
Scott, 1958) which is generally the
founder’s goal. They have a high degree
of formalization, where cooperation
among members is purposeful, too (Scott,
2003, p. 27).
difficult when (a) employees
are highly specialized –
sometimes more than their
bosses, or (b) there is lack of
communication between
employeer and employee; in
other words when control
cannot be exercised
(Vancouver, 1996).
about them with Blau in 1962,
and have evolved to other types
of systems. Weaknesses of this
theory are in the areas of
identification of signals, given
that social processes and goals
in the society change constantly
(Montagu, as cited by
Vancouver, 1996, p. 166).
8.Knowledge-based
Theories
(Foucault, 1977, Nonaka &
Takeuchi, 1995; Cooper
1989)
Organization design-Macro
level
The knowledge-based theory proposes
that organizations who have access to
know-how will perform differently to the
ones who do not. Closely linked to the
Foucaultian view of knowledge-power
(Cooper, 1989; Scott, 2003) it is also
linked to the traditional knowledge-based
Juceviciene & Leonaviciene
(2007) conducted a study of
organizations that want to
become world class firms,
based on six stages or classes
of development (Walton, as
cited by Juceviciene &
Bryant (2003) cites Asian
scholars Nonaka & Takeuchi
(1995) to explain that a firm
creates new knowledge through
four means: Socialization,
externalization, internalization
and combination. Bryant
Taxonomy of Organizational 18
theories (Penrose, as cited by Scott, 2003,
p. 114).
Simsek & Lous (2004) propose five stages
to reach the organizational change that
higher education institutions require:
“normalcy, confrontation of anomalies,
crisis, selection of a new paradigm and
normalcy” (Simsek & Louis, 2004, par.
10) in a continuum.
Firms have to choose between a
paradigms of two types: 1) Human
resources focused on training employees
to achieve qualification , competence, and
systemic competence or 2) Human
resources focused on either
teaching/learning paradigms.
Leonaviciene, 2007).
A world-class organization
is one that believes
employees are self-learners,
and prepare personal
development plans for them,
execute appraisals, empower
their employees,
communicate share values
and is in continuous learning
(Juceviciene &
Leonaviciene, 2007, p. 571).
proposal is to link the
organization strategy to the
cultivation of knowledge (p.
34). In this case, there is an
underlying concept of paradigm
shift, if the firm was not used to
make these processes formal.
Taxonomy of Organizational 19
9.Corporate Demography
(Carroll and Hannan, 2000)
Organization design- Macro
level
Corporate demography influences and is
influenced by organizational diversity.
The higher the diversity, the higher
sustained economic success, the higher
the speed of evolution of the firm (Carroll
and Hannan, 2000, p. 152) given the
specialization of its members and their
knowledge about particulars of a targeted
group (Allen & Montgomery, p. 149)
According to Gray and Lowery (as cited
by Carroll & Hannan, 2002, p. 152) the
uncertainty of the environment is more
efficiently faced by heterogeneous
systems and enhance the identification of
minority customers with employees
(Allen & Montgomery, p. 149.)
Carrol and Hannan (2000)
conducted a demographic
study in the beer and wine
industry in California and the
influence of organizational
diversity in an industry
characterized by small firms.
Given the peculiarity of
alcohol consumption in the
U.S., the growth of this
industry is highly dependent
on the environment and has
generated organizational
changes (p. 153)
This industry has used the
knowledge about gender
Policy-making is insignificant
and isolated when there is not
an understanding of corporate
demography.
Corporate demography provides
a formal framework to analyze
opportunities of international
ventures or intra regional
businesses, in addition to
statistical tools to measure
competitiveness in multiple
markets.
Carroll and Hannan (2000)
suggest that African Americans
have not created diversity
within their ethnic enclaves, as
Taxonomy of Organizational 20
Wilson (as cited by Carroll and Hannan)
reports a growth in inequality within
African-Americans population compared
to white population. Which means that
African-Americans have more distinct
classes within, than other races, as a result
of organizational diversity. Two
explanations are provided: a) the existence
of ethnic enclaves, and b) standardization
of employment relation (Carroll and
Hannan, 2000, 157).
consumption habits to create
new products that tap into
new markets. Specialty firms
design marketing campaigns
adapted to diverse
populations, based on the
expert knowledge of their
employees. Other firms
participate in culturally
diverse festivals and The
beer and wine industry had
undergone organizational
changes.
successful Japanese and Cuban
migrating groups have. They
also contend that because The
standardization of laws aimed at
improving the conditions of
vulnerable workforce, has
standardized in such a way that
they created inequalities
towards African American
groups.
Table 2 Global Thought
Theory General Description Current examples Other attributes
Taxonomy of Organizational 21
1. Geoeconomic Theory
(Schlevogt, 2001)
Global Theory- Macro
level
The Geoeconomic theory is one of the two
only new theories original from China and
based on the Chinese reality. It studies
the influence of geographic differences in
economic development and management
(Tsui et al, 2004, p. 137).
Schlevogt (2001) proposes this theory to
integrate the influence of economics and
management as key factors of success in
firms with geographical differences.
These differences affect the performance
of geographically different countries
within the country. The underlying
concept is that the requirements for
business survival are different (p. 520).
The geoeconomic theory is the one of the
Schlevogt (2001) studies
differences between two
Beijing (North) and Shanghai
(South) of continental China,
through a quantitative model
that surveyed 124 enterprises
in China.
The factors studied in
geoeconomics are: 1)
government support and
company size, (2)
environmental constraints, (3)
private ownership, (4)
participative and planning
management style, (5)
Appropriate structure, and
The implications of this
theory for policy makers
are significant, as it arises
awareness about regional
differences in China with
extrapolation to other
countries. The theory has
also implications for
business owners, as
enterprises in China (and in
other countries) will be
able to recognize what key
success factors they have
in their local economies
(Schlevegot, 2001, p. 521).
The key success factors
Taxonomy of Organizational 22
two new theories emerged from China in
the last century. This theory aims at
integrating strategic management and
Chinese management (Schlevogt, 2001, p.
520).
Differences between Asian countries and
the rest of the world were documented in
other studies (Tsui et al 2004) where the
focus was economic and social
transformation, changes in economic
policy, restructuring of state-owned firms,
transition from centrally planned
production to self-managed units, and
foreign direct investment. Schlevogt
(2001) contributes by analyzing regional
differences based on: organizational
(6) other factors that lack
solid organizational
paradigms: price cutting,
management expertise,
proactive strategies,
subcontracting, company age,
size, price- cutting strategy
(Schlevogt, 2001, p. 529).
The results suggested that in
the North of China
government support,
organizational structure and
management expertise were
the most important factors of
effectiveness; while in the
south, private ownership,
KSF concept helps
management to control and
monitor their performance
across time, and align
functions of sales, human
resources and financing
towards the goals.
One of the most interesting
is the acknowledgement
that the concept of “best
practices” used frequently
in the western world and
based on empirical
evidence, in China is based
on anecdotal transfer
(Schlevogt, 2001, p. 522).
Taxonomy of Organizational 23
structures, management practices,
effectiveness.
This theory builds upon resource-based
approaches and key success factor (KSF)
(Hofer and Schendel, as cited by
Schlevogt, 2001). This theory should not
be confused with geopolitics (Haushofer,
1934 as cited by Schlevogt, 2001, p. 524)
which foucs were only international
politics. The theory studies the impact of
subcultures in behavior and performance
of individuals and organizations (p. 524,
par 2).
company age and planning
were the most important.
Schelvogt suggest that
managers in transnational
organizations need to
recognize these regional
differences, that the
“government is king in the
North of China, whereas
networks are important in the
South, and structure is
important anywhere” (p. 545)
Meyer and Lu (2005)
present a confirmation that
boundaries, loose coupling
and other systems are not
characteristics of Chinese
firms. Chinese firms, are
boundaryless, in constant
transition of ownership,
extremely tied to the state,
and ruled by the
relationships with
authority.
2. Knowledge Paradigm -
An Asian Perspective
(Tsui et al, 2004; Li, Tsui,
Tsui et al (2004) contends the differences
between exploitation and exploration of
knowledge. The creation of new theories
Previous works by Li, Tsui,
and Weldon (2000) had
reported the characteristics of
In two studies prepared in
2002, Li and Tsui found
that between 1984 and
Taxonomy of Organizational 24
and Weldon, 2000)
Global Theory- Macro
level
requires historical and anthropological
knowledge, combined with quantitative
research (p. 142), this is exploration of
knowledge.
Knowledge of the organization context is
necessary for any scholar who wants to
create a new theory. Exploiting implies
observing a new context and applying
traditional theories and try to make it fit,
which would not necessarily increase
knowledge (Tsui et al, 2004). If
exploitation is combined with exploration,
new knowledge will be generated as a
fact; if theories are simply replicated on
new economies or societies no new
knowledge is created (Tsui et al, 2004, p.
Asian organizations that
differentiates them from
Western firms: Boundaryless
organizations, networks based
on familial relationships
(Scott, 2003, p. 228),
collectivism (Hofstede, as
cited by Tsui, 2006, p. 5),
equality rules vs. differential
rule of reward allocation
(Chen, 1995 as cited by Tsui,
2006, p. 5).
Tsui et al (2004, p. 3) studies
the (1) level of
institutionalization of China
and measures them by the
1999, 226 papers in
scholarly journals had
addressed China as object
of study in management
and organization; and 104
between 2000 and 2003.
All of them were
adaptations of Western
Theories and not originally
created from the China
reality, with exception of
two: Geoeconomic theory
(Schlevogt, 2001) and
Political theory (Shenkar
and Yan, 2002) (Tsui et al,
2004, p. 2).
Taxonomy of Organizational 25
142).
Tsui (2006) argues for the need of
contextualization of management theories
to the Chinese management research
literature. Most of the studies applied in
Asian countries are adaptations of
institutionalized theories such as: agency,
resource-based, transaction cost, role
theory, cultural diversity theory (p. 5)
degree of separation from the
state. The number of Chinese
firms listed in the stock
exchange that are still 100%
owned by the corporations
with state ownership, (3)
degree of influence of
political motives in strategic
decisions (i.e. differences in
financing between private and
state-owned firms). (3) Status
of private property.
Tsui cites Chen (1995) as a
theorist that has understood
the need of
contextualization in China
to improve the validity of
western theories, with
beneficial consequences in
prediction and hypothesis
(Tsui, 1996, p. 6).
3. Political Theory
(Shenkar and Yan, 2002)
Global Theory- Macro
level
The political theory (Shenkar and Yan,
2002) is one of two theories originally
emerged from China (Tsui et al, 2004).
Shenkar has been an active scholar
Shenkar and Yan (2002)
conducted a study to identify
49 events that were critical to
the creation and failure of
The theory studies the
integration of politics into
the creation of joint
ventures in China. Shenkar
Taxonomy of Organizational 26
interested in International Cooperative
Ventures (ICVs) with China.
The resulting model is called Integrative
Political Process Model of ICV Failure
where political influence is one of the
most important variables, along with
political jolts, changes in the industry and
redirection of strategies as result of
political influence.
Shenkar and Yan classify ICVs in two:
Equity-based joint ventures (EJVs) and
contractual joint ventures (CJVs). EJVs
are characterized by a jointly investment
and ownership of assets and liabilities,
through the creation of a new entity. CJVs
do not imply ownership and they are also
CJVs and track down the
reasons of the failure. They
focus on 49 events throughout
five stages:
Pre-formation, formation,
post-formation, crisis and
decline, and termination (par.
6).
The authors conducted a
semi-structured survey using
a case study: Ramada
Renaissance Guilin a small
town in China, using non-
traditional methodology: press
conferences, expert
interviews, newspaper clips.
and Yan based their theory
in previous studies that
addressed failure of ICV in
a static way, without an in-
depth analysis of why or
how they fail. The focus of
Shenkar and Yan is in the
process that takes an ICV
from creation to failure.
This theory has some
similarities with the
symbolic management
concept and loosing
coupling concept of Pfeffer
and Slancik (1978, 1981)
that purported the political
Taxonomy of Organizational 27
called cooperative ventures.
Through empirical research they built a
process-based model to link the
perspectives of failure and its linkage with
politic dynamics such as: partner
disagreement, pursuit of hidden agenda,
political undercurrents, mutual sabotage,
conflict escalation and public disclosure,
and endgame (Shenkar & Yar, 2002,
par.7).
Shenkar and Yan follows a
chronological multi-stage
model analyzing 46 events
and its implications in
politics, logistics, economics
and finances.
The authors concluded that
transaction costs and the
bargaining power were
important factors in the failure
of this venture.
implications of power in
successions (acknowledged
by the authors themselves).
Other studies had defined
failure based on transaction
costs, bargaining power,
partner selection and
competitive learning
(Shenkar & Yan, 2001).
Table 3 Non-traditional Theories
Theory General Description Current examples Other attributes
4. Confucianism
(Tsui et al, 2004; Tsui,
Confucianism is a social paradigm
originated in China that prevails as the
Tsui et al (2004) cites the
work of Hui, Lee, and
Five citizenship behaviors
studied by Farh, Zhong,
Taxonomy of Organizational 28
2006, Hui et al, 2004; Farh,
Zhong, and Organ, 2004)
Non-traditional theory-
Macro level
base of the social structures and
relationships in China, and becomes a
factor in citizenship behavior.
According to Hui, Lee and Rousseau (as
cited by Tsui et al, 2004), Confucianism
or wu lun establishes relationships based
on hierarchies and roles “emperor-subject,
father-son, husband-wife, elder-younger,
and friend-friend) where individuals link
to their superiors in the organizations,
government or other institutions, but not
to the organization itself (Tsui et al, 2004,
p. 141).
The implications for the relationship
leader- follower in China are significant,
as citizenship behavior and respect to
Rousseau (2004) about
employment relationships in
China and the implications
of their citizen behavior,
under the light of
Confucianism.
Hui et al, (2004) conducted
a study to explain the
relationship between
citizenship behavior and
organizational commitment,
using a sample of 605
employees and their
superiors. They found that
the level of organizational
support increased the level
and Organ (2004) differ
from Western behaviors,
since they were rooted in
Confucianism: “Self-
training, social welfare
participation, community
service, protecting and
saving company resources,
keeping the workplace
clean, and actions aimed to
preserve of facilitate
interpersonal harmony”.
The Chinese economy
differs from the Western
economies in the following
organizational paradgims:
Taxonomy of Organizational 29
superiors and the roles in the society. Hui
et al, (2004) draw from Confucianism the
concept of affection and respect between
followers and leaders, as a reciprocal
behavior to the symbol of authority.
Employees are more committed because
of the depth in personal relationships
more than the perceived organizational
support, different from Western behaviors
(Tsui et al, 2004).
of commitment of the
workers, in a similar result
as in western corporations.
Farh, Zhong and Organ
(2004) studied 700
descriptors of citizenship
and influence of state-
owned and non-state owned
corporations (Tsui et al,
2004, p. 141)
price cutting, management
expertise, proactive
strategies, subcontracting,
company age (Schlevogt,
2001, p. 529)
5. Cultural Feminism
(Gilligan, 1982; Townsend
and Twombly, 1998)
Non-traditional theories-
Macro level
Women learn, communicate, and lead
differently than men, which requires
change to allow women compete in a
patriarchal society.
A paradigmatic shift is promoted from
this perspective (As cited by Townsend &
In higher education, a study
prepared by Belenky et al
(1986) proposed cultural
feminist strategies such as:
1) Special programs for
women: in the classroom,
Advantages of the theory:
Values essential
differences between men
and women, different to
liberal perspective.
However, Paradigm shift is
Taxonomy of Organizational 30
Twombly, 1998).
Seltzer (2004) offers a short by interesting
analysis of similar cases of women who
face “glass ceilings” in their executive
careers. The author suggests that possible
reasons relate to gender stereotypes and
distinct perceptions. Two factors that
affect the willingness of organizations to
encourage promotions of women in the
work place: organizational context and
self-monitoring.
The organizational context is the “extent
to which a workplace traditionally had
significant number of women managers”
(Seltzer, 2004, p. 15). Self-monitoring
relates to the “extent to which individuals
studies, events; 2) Emphasis
in women’s ways of
knowing; 3) Specific
leadership training for
women; 4) Operations and
organizations
accommodating to women’s
leadership, learning and
communication
There is little evidence of
the existence of this type of
programs in colleges
(Peterson’s Guide to Two-
Year schools, as cited by
Townsend and Twombly,
1998).
not simple (Townsend &
Twombly, 1998)
In the practice, the number
of programs for women are
limited to below the
projections of the
organizations (As cited by
Townsend and Twombly,
1998)
Organizations may be
slower or faster in
recognizing the rights of
females to have top
positions depending on
how exposed they have
been to it.
Taxonomy of Organizational 31
are sensitive to external cues and norms
and adjust their behavior in response”
(Seltzer, 2004, p. 15).
6. Liberal feminism
(As cited by Townsend and
Twombly, 1998)
Non-traditional theories-
Macro level
Townsend and Twombly (1998) start their
analysis of feminism, citing Levy and
Merry’s (1996) definition of paradigm
shifts of two orders. First order changes
are relatively minor adjustments that leave
organizations’ core essentially intact and
that occur naturally as a system grows and
matures.
Second-order are “multidimensional,
multi-level, qualitative, discontinuous,
radical organizational change (s)
involving a paradigmatic shift” propose a
theory of liberal feminism that provides
Townsend and Twombly
(1998) analyzed and
identified the type of
feminist theories applied
across community colleges
in the United States using
liberal feminist theories.
The agenda of liberal
feminism included: 1) Equal
pay for work, 2) equal
access to high level
positions, 3) affirmative
action in hiring, 4)
Advantage of the theory:
Awareness of patriarchal
thinking and behavior with
feminist agenda. Topics
have been addressed at
community colleges,
because of the influence of
70s and 80s interest on :
sexual harassment, salary
inequities, family leaves
policies.
The application of the
theory has its
Taxonomy of Organizational 32
equal opportunities for men and women
by eliminating limitations for participation
and achievement of women.
Barriers to the promotion of women
acknowledged by this theory are: (1) Lack
of equal opportunities (2) sex role
socialization, (3) sex stereotyping, and (4)
sex discrimination (Acker as cited by
Townsend and Twombly, 1994).
establishment and
enforcement of sexual
harassment guidelines, 5)
child care assistance, 6)
gender-inclusive language
and 7) maternity and family
leaves (Townsend &
Twombly, 1998, p. 79)
Most of the changes were
only first-order and
patriarchal style was still
present.
shortcomings. Not much
has been achieved, and
second-order change has
not been obtained; only
first order change.
7. Organizational Diversity
Approach
(Lewin, 1933; Schein,
2003; Cox and Blake,
Organizational diversity implies diversity
in gender, race, sexual preferences,
education, experience and opinions (Allen
& Montgomery, 2001, p. 149). The level
Firms that have embraced
diversity in the United
States, includes: Microsoft
Corporation, WalMart
Lewin (1993) studied
diversity and proposed
three stages in
organizational change
Taxonomy of Organizational 33
1991; Allen and
Montgomery, 2001)
Non-traditional theories-
Macro level
of diversity will depend on the innovation
level in the organization, “founding rates,
diversity of new entrants, the merger rate,
and disbanding rate (…) environmental
change and adaptive capacities of the
organization” (Carroll and Hannan, 2000,
p. 158).
Organizational diversity is based on the
germinal theory of organizational change
by Kurt Lewin (1933) who purported that
organizations behaved as living beings
and that change was the result of driving
forces and resisting forces.
Cox and Blake (2001) developed a
typology of diversity in three categories:
(1) monolithic, (2) pluralistic, (3)
stores, MacDonald’s corp.
Allen & Montgomery
(2001) report that
McDonald’s adjusted
seating spaces to
accommodate Hispanic
families with large number
of members. WalMart has
also made changes to their
promotional and marketing
campagins to include
Hispanic holidays.
Microsoft corporation
expresses their commitment
to diversity in their vision
statement and the creation of
“freezing, moving and
refreezing”. Extrapolated
to the typology of
multicultural organizations,
to ensure that an
organization may take
steps towards diversity,
without reversion (Allen &
Montgomery, 2000)
Diversity in leadership has
the advantage of increasing
the motivation of talented
minority employees who
easily identify with their
leaders (Allen &
Montgomery, 2001, p.
Taxonomy of Organizational 34
multicultural (Allen & Montgomery,
2001, p. 150). Monolithic organizations
have majority of white males as managers,
and women and minorities abide by the
majority’s norms and values.
Pluralistic organizations have more
diversity in their staff due to hiring and
promotion efforts in favor of minorities,
through affirmative action programs.
Minorities still abide by the majority’s
norms and values. Multicultural
organization: Implies a creating a
different culture, where their workforce is
encouraged to learn from each other,
adopting some of the rules of minority
groups. This diverse culture increases the
a diversity department and a
Diversity Advisory Council.
Their goals, as reported by
Allen & Montgomery is to
increase the distribution of
women and minorities in top
executive positions. The
customer base of Microsoft
shows 150 countries and 50
languages.
Microsoft diversity
statement shows the
inclusion of the following
groups: “African
Americans, employees with
attention deficit disorder,
149). An increase in
motivation given the
openness to diversity is
another benefit.
Organizations that want to
embrace diversity should
conduct a top down
analysis to gain awareness
of the structure of their
workforce and design a
diverse culture where
perpetuation ensures that
“the organization does not
revert back to its original
state” (Allen &
Montgomery, 2001, p.
Taxonomy of Organizational 35
competitive advantage of the organization
(Allen & Montgomery, 2001; Cox &
Blake, 1991, p. 51).
The transformation from traditional
organizations to multicultural requires
five components: “ 1) leadership, 2)
training, 3) research, 4) analysis and
change of culture and human resource
management systems, and 5) follow up”
(Cox & Blake, 1991, p. 52)
Chinese, deaf or hard of
hearing employees,
Filipinos, gay, lesbian,
bisexual and transgender
employees, Hispanics,
Indians, Koreans, Native
Americans, single parents,
women, and working
parents (Allen &
Montgomery, 2001)
153).
But diversity has also
costs: underutilization of
resources, unrelated
outcomes and turnovers
(Carroll and Hannan, 2002,
p. 157)
Taxonomy of Organizational 36
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